Spain's Telefonica plans to purchase German mobile unit E-plus from Dutch telecommunications company Royal KPN NV 5 one billion euros ($ 658 million), plus the shares that will create Germany's largest mobile phone operator in terms of a customer transaction.
Tuesday announced that the proposed transaction will bring together E-Furthermore, the current No. 3 carrier in Germany, 23.4 million customers, with O2 - the fourth largest, which is already owned by Telefonica, and has 193,000 customers.
Telefonica's German subsidiary in Germany, Telefonica said it expects to be between $ 500 million and 5.5 billion euros in savings, distribution, customer service and network areas of synergy.
The plan is expected to received a total of ? 500 million in cash and 17.6% stake in Telefonica Germany, KPN, the Dutch company said, adding that the transaction value of the E-Plus in 810 one billion euros.
The transaction is subject to shareholder and antitrust approval. The companies expect to close in mid-2014.
Germany's largest mobile operator Deutsche Telekom is now T-Mobile, serves some of the 36.6 million people; Vodafone second, with 33.9 million customers. E-Plus and O2 combination will have nearly 430,000.
"This transaction is a strong commitment to the German market, and Telefonica's growth story is a significant step forward - to provide us with a leading position within the strongest economies in Europe," chairwoman Eva Castillo Spain's Telefonica Telefonica Germany Supervisory Board and CEO of Europe.
Germany is Europe's largest economy, even across large parts of Europe, as the country struggles public debt and the recession continued to grow.
Telefonica has a mobile and fixed-line operations in Europe and Latin America.
KPN announced that its second-quarter net profit fell to 108 million euros, down 68% from a year earlier, due to the severe market conditions, its mobile phone business and the continued decline in fixed-line services.
KPN said that from last year's 3.2 one billion euros, and its second-quarter revenue fell 8% to 2.9 one billion euros. Competent CEO Eelco Blok said the company will now "focus on its core areas," the company said it will use most of the cash sale to "improve its financial flexibility."
 



Other News:
Asian stocks mixed after Japan election
Telefonica to buy Germany's E-Plus from KPN
House GOP considers food stamp work requirements
Tokyo futures extend gains on firm share prices
Asian stocks hit six-week high, gold steadies after jump
Colo. gun-rights rally called 'slap in the face'
Egypt starts amending constitution despite political divisions
Beacon focus of Boeing fire probe, Boston plane upsets investors